Samsung to acquire Sony stake in LCD joint venture
December 26th, 2011 - 7:38 pm ICT by IANSNew Delhi, Dec 26 (IANS) South Korean Samsung Electronics will buy Japanese Sony Corporation’s stake in their joint liquid crystal display (LCD) venture for 1.08 trillion won ($939 million).
The two companies have signed an agreement to this effect that would make the venture producing LCD panels used in televisions a wholly owned subsidiary of Samsung, the world’s biggest television maker.
“Under the agreement, Samsung will acquire all of Sony’s shares of S-LCD Corporation (’S-LCD’), the two companies’ LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung,” the companies said in a joint statement Monday.
“In consideration for the share transfer, cash consideration of approximately KRW 1.08 trillion will be paid to Sony by Samsung,” added the statement.
The share transfer and payment are targeted to close by the end of January 2012 depending on regulatory approvals.
For Sony, the transaction will enable it to monetize its shares in S-LCD. It will help the consumer-electronics exporter secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility.
Both companies, however, said they would cooperate in engineering efforts focused on LCD panel technology.
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Tags: cash consideration, consumer electronics, display lcd, joint venture, lcd panels, liquid crystal display, New Delhi, regulatory approvals, samsung, samsung electronics, share transfer, sony, sony corporation, south korean, stake, subsidiary, television, televisions, trillion